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DECISION No

DECISION No. 135/1998/QD-TTg OF JULY 31, 1998 TO APPROVE THE PROGRAM ON SOCIO-ECONOMIC DEVELOPMENT IN MOUNTAINOUS, DEEP-LYING AND REMOTE COM-MUNES WITH SPECIAL DIFFICULTIES

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to Resolution No. 4/1998/NQ-CP of the Government at its March 1998 regular meeting;

At the proposals of the Minister-Chairman of the Committee for Ethnic Minorities and Mountainous Areas, the Minister of Planning and Investment, the Minister of Finance, the Minister of Labor, War Invalids and Social Affairs and the Minister of Agriculture and Rural Development;

DECIDES:

Article 1.- To approve the program on the socio-economic development in mountainous, deep-lying and remote communes with special difficulties, with the Committee for Ethnic Minorities and Mountainous Areas acting as its standing body to assist the Government in directing the program implementation, which includes the following contents:

I. OBJECTIVES

1. General objective:

To quickly improve the material and spiritual life of the ethnic minority people in mountainous, deep-lying and remote communes with special difficulties; create conditions for these areas to overcome poverty, backwardness and under-development and integrate themselves into the overall national development, thus contributing to the maintenance of social order and safety, national security and defense.

2. Specific objectives:

a/ For the 1998-2000 period:

- There will be basically no households suffering from chronic hunger, with the number of poor households to be reduced by 4-5% annually.

- To initially supply the inhabitants with water for their daily life, attract the majority of school-age children into schools; to be able to control a number of dangerous diseases, to build roads to the centers of commune clusters in service of the people's life and economic activities; to help the majority of people to enjoy cultural performances and communication services.

b/ For the 2000-20005 period:

- To reduce the percentage of poor households in communes with special difficulties to 25% by the year 2005.

- To ensure the supply of sufficient water for the inhabitants' daily life; attract over 70% of school-age children into schools; to provide a great majority of inhabitants with production experiences, scientific, cultural and social knowledge so that they can take initiative in applying such experiences and knowledge to their production and life; to be able to control most of dangerous social diseases; to build roads to the centers of commune clusters for motorized vehicles and in service of the people's daily life and economic activities; to boost the development of rural markets.

II. DIRECTING PRINCIPLES

1. The socio-economic development in mountainous, deep-lying and remote communes with special difficulties must be, first of all, based on the promotion of the internal resources of every household and the community-based assistance and at the same time with the active support of the State in order to tap local land and labor resources as well as the natural, and socio-economic conditions in the areas, create new changes in the people's production as well as material and spiritual life.

2. The State shall create a legal environment and adopt socio-economic development policies, give priority to the allocation of the State budget, funding of the programs and projects located in the areas and capital sources donated by foreign countries and international organizations to communes with special difficulties.

3. There should be comprehensive measures for implementing the program, first of all concentrating on the agricultural and forestrial development; building rural infrastructure; and at the same time boosting the educational, medical, cultural and social development in the areas.

4. The provinces and cities directly under the Central Government, the ministries and branches shall have to assist the communes covered by the program; socio-economic organizations, people's armed forces, socio-professional organizations, enterprises and the people of all strata throughout the country as well as overseas Vietnamese... are encouraged to make active contributions to and support the program implementation.

III. SCOPE OF THE PROGRAM

1. The Central Government shall select 1,000 out of 1,715 communes facing difficulties (the list of these communes is enclosed herewith) of the districts with special difficulties so as to concentrate investment under this program. The remaining communes shall receive priority investment through various national target programs and other development projects and programs.

2. The program shall be implemented from 1998 to 2005.

IV. TASKS OF THE PROGRAM

1. To make a planning on the population re-distribution in places where it is so necessary, step by step rationally organize the daily life of the inhabitants in mountainous and rural villages and hamlets in areas where conditions permit, particularly in border and island communes, create conditions for the inhabitants to quickly stabilize their production and life.

2. To boost agricultural production and forestry in association with products processing and marketing so as to tap local natural resources and utilize the local labor force, create more opportunities of employment and income generation, stabilize the inhabitants' life and gradually develop goods production.

3. To develop the rural infrastructure in line with the production planning and the population re-distribution planning, first of all, the communications system; the drinking water supply systems; and the power-supply systems in areas where conditions permit, including mini hydro-electric power stations.

4. To plan and build centers of commune clusters, focusing on the investment in building medical and educational establishments, commercial centers, handicraft and cottage - industrial establishments, production and service establishments, radio and television networks.

5. To train cadres for mountainous and rural communes and villages, help grassroots cadres to raise their administrative and economic management abilities in order to meet the local socio-economic development requirements.

Article 2.- Some major policies

1. Land policy:

The presidents of the provincial People's Committees shall direct the assignment of land and forests and the granting of land tenure certificates in association with the sedentarization and development of new economic zones, creating conditions for the people to have access to land for production and stabilize their life.

a/ Farmers' households in mountainous areas where there are forest protection and planting projects shall be contracted to protect and zone off areas for forest regeneration in combination with additional plantings, be assigned land for planting protection and/or production forests under Decision No. 661/1998/QD-TTg of July 29, 1998 of the Prime Minister on the "objectives, tasks, policies and organization of the implementation of the Project to plant five million hectares of new forests". The land area quotas to be assigned under contracts shall depend on the specific conditions of each locality and be decided by the provincial People's Committees.

b/ In areas where farmers have no land or too little land for agricultural and/or forestrial production, the following solutions may be applied:

- In provinces where land is still left waste and can be reclaimed for the development of agricultural and/or forestrial production, the State shall support the investment in the land reclamation and the assignment of such land to inhabitants for production.

- To assign State-run and military agricultural farms and/or afforestation/logging camps based in the localities to receive landless people, nomadic people and assign land to them under contracts for production.

- The provincial People's Committees shall adopt policies to encourage non-State agricultural and forestrial organizations to receive and offer jobs to poor farmers' households.

The State shall earmark some investment capital for the expansion of several new economic zones, chiefly for receiving poor farmers' households who come to carry out production therein, including those in the Long Xuyen Quadrangle, the Central Highlands, Binh Thuan and other areas with conditions. To assign the Ministry of Agriculture and Rural Development to assume the prime responsibility together with the Ministry of Planning and Investment and the Ministry of Defense for coordinating with the concerned provincial People's Committees in expeditiously performing this task.

2. Investment and credit policies:

a/ To give priority to investment in building infrastructure in service of agricultural and forestrial production. In places where irrigation works can help develop wet rice cultivation, the State shall allocate the budget capital to support the investment in building irrigation works. In a number of highland areas with special difficulties where there is no wet rice field, the State shall provide funding for developing terraced fields, helping the inhabitants to have conditions for on-the-spot food production.

b/ The State shall subsidize prices and transport freights of goods essential for the production and life of farmers' households living in communes with special difficulties according to Decree No. 20/1998/ND-CP of March 31, 1998 of the Government.

c/ Households which are assigned land and/or forests for growing industrial plants, fruit trees, specialty trees, herbal plants and forestrial production shall enjoy the policy stipulated by the Prime Minister in his Decision No. 661/1998/QD-TTg of July 29, 1998 on the "objectives, tasks, policy and organization of the implementation of the Project to plant five million hectares of new forests".

d/ The national target programs and relevant programs within the areas should give priority to investment in this program. The households covered by this program shall be given priority to borrow capital from the bank for the poor and other preferential credit sources for production development.

e/ The presidents of the People's Committees of the provinces covered by this program shall concentrate on directing and mobilizing various local resources for the program implementation. Apart from the source of investment capital for the overall development of the whole region, the State shall also give financial support for performing the following tasks:

- Building of the centers of commune clusters, which shall be financed by the capital source of the national program on hunger elimination and poverty alleviation.

- Development of the traffic network: each district shall be provided with one bulldozer, one rear-dump truck and one road-roller. The State shall provide explosives, cement, steel and iron for building subterranean passage, bridges, culverts as well as food for the construction of rural roads.

- Construction of power projects: in areas where conditions permit, the State shall support the investment in building the electric transmission lines to the centers of commune clusters according to the planning and the investment capability in each period. In areas where conditions permit the construction of mini-hydro-electric projects, the State shall support the inhabitants part of the expenditures and lend credits for development investment.

- In places where exit difficulties in the drinking water supply: the State shall support part of expenditures for building a number of water supply points suitable to the population distribution planning.

g/ The State encourages the establishment of inter- family terms or groups for mutual assistance in production and daily life, and efficient use of rural credit sources.

h/ The people in communes with special difficulties shall enjoy free health-care and medical treatment at State medical establishments under Decree No. 95-CP of August 27, 1994 of the Government.

3. Human resource development policies:

a/ The State shall allocate funding for the training and fostering of cadres for mountainous and rural communes, villages and hamlets so as to raise their capability of organization and direction, production management, administrative management and the capability of managing and using rural credit sources to meet the local socio-economic development requirements.

b/ Pupils in communes with special difficulties who go to school shall be provided with textbooks, stationery and exempt from school fees.

c/ In each of communes with special difficulties under the program, several farmers' households which achieve good production results shall be selected for training in skills to conduct the agricultural and forestrial production promotion work in the localities and enjoy allowances from the funding for agricultural and forestrial promotion work.

d/ The State shall allocate funding for opening job training courses for ethnic minority children so as to tap local potentials, develop non-agricultural production and business lines for the purpose of income generation and improvement of the living standards.

4. Tasks of various levels and branches and support and contributions of individuals and organizations inside and outside the country for the program implementation:

- The steering committee for the program implementation shall discuss in detail with the provinces and cities directly under the Central Government where conditions permit, which, in the immediate future are Ha Noi, Hai Phong, Quang Ninh, Ho Chi Minh City, Dong Nai, Ba Ria - Vung Tau, Da Nang and Khanh Hoa, and assign them to directly assist a number of communes targeted by the program, focusing on such contents as giving financial support for the infrastructure construction, mobilizing their local cadres to visit and assist these communes...

- To assign each ministry or branch at the central level to assist a number of communes and at the same time assign each of State enterprises in the branch to assist a number of communes. The ministries, branches and enterprises shall work out plans to save their expenditures and mobilize voluntary contributions from their employees and workers so as to have funding to support these communes.

- To assign the Ministry of Defense to build new economic zones in areas where condition permit, sponsor and receive about 100,000 households to settle down in waste land areas, border and island areas.

- The State shall encourage socio-political organizations, socio-professional organizations and people of all strata throughout the country as well as overseas Vietnamese to support and assist the implementation of this program.

5. Tax policies

Trading in agricultural and forestrial products and goods catering for production and life of the inhabitants in communes with special difficulties shall be entitled to preferential tax policies as stipulated in Decree No. 20/1998/ND-CP of March 31, 1998 of the Government and other tax policies which promote investment in accordance with current regulations.

Article 3.- Capital sources and their use

1. The investment capital for implementing the program shall be mobilized from the following sources:

- The State budget capital (including the capital donated by foreign governments and international organizations).

- Credit loans.

- Capital mobilized from organizations and population communities.

2. To assign the Ministry of Planning and Investment to assume the prime responsibility and coordinate with the Ministry of Finance, the State Bank of Vietnam, the Committee for Ethnic Minorities and Mountainous Areas and concerned ministries and branches in working out solutions to balance various capital sources in annual plans before submitting them to the Government for decision and making investment in different projects to implement the program.

Article 4.- Organization of implementation

1. The Central Steering Committee for the "Program on the socio-economic Development in mountainous, deep-lying and remote communes with special difficulties" shall direct the ministries and functional branches to implement the program according to their respective functions and tasks and direct the provincial boards for the program implementation and management to formulate specific projects then submit them to the competent branches and levels for evaluation and approval according to current regulations, and make annual plans and organize the effective implementation of these projects in the provinces.

2. The annual plans on the program implementation shall be drawn up by the provincial People's Committees as a separate part of the socio-economic development plans of the provinces and submitted to the Government. The Ministry of Planning and Investment, the Ministry of Finance, the concerned ministries and branches and the Central Steering Committee for the Program on the socio-economic development in mountainous, deep-lying and remote communes with special difficulties shall base themselves on their respective functions and tasks to submit to the Prime Minister for decision the investment capital allocated for the program, which shall be included separately in the annual plans of the localities and managed and used by the localities for the right purpose and target beneficiaries and in conformity with the plans so as to ensure the effective implementation of the program.

Article 5.- This Decision takes effect 15 days after its signing. The head of the Steering Committee for the Program on the socio-economic development in mountainous, deep-lying and remote communes with special difficulties, the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the provinces and cities directly under the Government shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI

Table 1

LIST OF 7 KEY PROVINCES THAT HAVE COMMUNES

WITH SPECIAL DIFFICULTIES

Ordinal Names of Names of Number of Number of Number of

Number provinces districts communes households inhabitants

(1) (2) (3) (4) (5) (6)

1 Ha Giang 8 districts 117 44,464 276,589

1.1 Meo vac 15 7,004 44,838

1.2 Dong Van 17 7,244 45,852

1.3 Yen Minh 14 5,916 38,304

1.4 Quan Ba 10 3,557 21,737

1.5 Hoang Su Phi 25 7,755 50,004

1.6 Xin Man 17 5,941 35,908

1.7 Bac Me 10 3,477 22,850

1.8 Vi Xuyen 9 3,570 19,096

2 Cao Bang 10 districts 106 38,768 233,782

2.1 Bao Lac 15 7,320 49,060

2.2 Ha Lang 10 3,406 18,943

2.3 Thong Nong 6 1,783 10,243

2.4 Nguyen Binh 13 3,879 25,796

2.5 Ha Quang 13 3,584 21,142

2.6 Tra Linh 5 1,338 7,760

2.7 Trung Khanh 10 4,855 26,474

2.8 Quang Hoa 13 5,526 28,799

2.9 Thach An 9 2,878 15,619

2.10 Hoa An 12 4,199 29,946

3 Lai Chau 7 districts 88 30,083 209,171

3.1 Muong Te 16 4,072 27,816

3.2 Sin Ho 19 6,706 45,173

3.3 Dien Bien Dong 9 3,581 28,810

3.4 Tua Chua 9 3,255 23,615

3.5 Muong Lay 7 3,420 24,462

3.6 Phong Tho 21 6,839 44,105

3.7 Tuan Giao 7 2,210 15,190

4 Son La 7 districts 52 24,142 168,812

4.1 Song Ma 14 6,685 48,219

4.2 Thuan Chau 12 5,618 41,603

4.3 Bac Yen 5 1,543 10,368

4.4 Muong La 6 2,513 16,689

4.5 Phu Yen 5 1,668 12,346

4.6 Moc Chau 6 3,448 20,749

4.7 Quynh Nhai 4 2,667 18,793

5 Bac Can 5 districts 84 28,058 146,054

5.1 Ba Be 16 5,453 34,391

5.2 Ngan Son 5 1,871 10,579

5.3 Na Ri 21 5,936 32,716

5.4 Cho Don 21 7,508 27,161

5.5 Bach Thong 21 7,290 41,207

6 Lao Cai 7 districts 115 39,918 260,913

6.1 Bac Ha 31 9,840 60,839

6.2 Sa Pa 17 4,412 31,018

6.3 Bat Xat 17 5,115 33,934

6.4 Than Uyen 12 5,989 43,847

6.5 Muong Khuong 13 4,695 29,039

6.6 Van Ban 15 4,538 31,142

6.7 Bao Yen 10 5,329 31,094

7 Kon Tum 4 districts 24 8,590 44,028

7.1 Dakglei 7 2,541 12,398

7.2 Dakto 7 2,030 10,476

7.3 Kon Plon 6 2,585 14,091

7.4 Sa Thay 4 1,434 7,063

Total 7 provinces 48 districts 586 214,023 1,341,349

Table 2

LIST OF PROVINCES THAT HAVE KEY DISTRICTS

WITH SPECIAL DIFFICULTIES

Ordinal Names of Names of Number of Number of Number of

Number provinces districts communes households inhabitants

(1) (2) (3) (4) (5) (6)

1 Tuyen Quang 2 districts 35 19,971 113,645

1.1 Na Hang 20 8,835 54,921

1.2 Chiem Hoa 15 11,136 58,724

2 Lang Son 2 districts 17 5,305 32,324

2.1 Dinh Lap 7 2,307 13,140

2.2 Binh Gia 10 2,998 19,184

3 Yen Bai 2 districts 24 6,034 44,472

3.1 Mu Cang Chai 13 3,813 29,670

3.2 Tram Tau 11 2,221 14,802

4 Hoa Binh 2 districts 24 7,721 49,599

4.1 Da Bac 16 5,418 35,186

4.2 Mai Chau 8 2,303 14,413

5 Thanh Hoa 3 districts 25 12,014 75,589

5.1 Muong Lat 6 2,995 20,553

5.2 Quan Hoa 12 5,677 30,515

5.3 Quan Son 7 3,342 24,521

6 Nghe An 3 districts 49 20,023 136,581

6.1 Ky Son 20 6,348 49,982

6.2 Que Phong 10 5,136 34,587

6.3 Tuong Duong 19 8,539 52,012

7 Quang Binh 2 districts 18 8,059 47,417

7.1 Minh Hoa 11 4,683 26,687

7.2 Tuyen Hoa 7 3,376 20,730

8 Quang Tri 2 districts 18 4,249 25,112

8.1 Huong Hoa 13 3,215 18,993

8.2 Dak Rong 5 1,034 6,119

9 Thua Thien-Hue 2 districts 15 3,391 20,045

8.1 A Luoi 11 2,396 14,505

8.2 Nam Dong 4 995 5,540

10 Quang Nam 3 districts 32 8,455 39,242

10.1 Hien 16 3,611 12,117

10.2 Giang 8 1,927 11,315

10.3 Phuoc Son 8 2,917 15,810

11 Quang Ngai 2 districts 19 5,824 33,657

11.1 Son Tay 4 2,128 13,600

11.2 Tuyen Hoa 15 3,696 20,057

12 Binh Dinh 2 districts 12 4,137 21,519

12.1 An Lao 7 1,149 7,947

12.2 Vinh Thanh 5 2,646 13,572

13 Phu Yen 1 district 5 1,881 10,525

13.1 Son Hoa 5 1,881 10,525

14 Ninh Thuan 1 district 11 3,736 21,344

14.1 Ninh Son 11 3,736 21,344

15 Gia Lai 2 districts 14 5,525 33,709

15.1 Kon ChRo 6 2,088 13,063

15.2 Krong Pa 8 3,437 20,646

16 Daklak 2 districts 7 1,855 11,103

16.1 Dak Nong 4 825 5,181

16.2 Krong No 3 1,030 5,922

17 Lam Dong 1 district 5 2,582 15,784

17.1 Lac Duong 5 2,582 15,784

18 Binh Phuoc 1 district 2 1,467 7,416

18.1 Bu Dang 2 1,467 7,416

19 Bac Giang 1 district 14 6,500 37,728

19.1 Son Dong 14 6,500 37,728

20 Thai Nguyen 1 district 11 6,162 34,408

14.1 Ninh Son 11 6,162 34,408

21 Phu Tho 2 districts 31 16,900 91,843

21.1 Yen Lap 12 8,968 46,549

15.2 Thanh Son 19 7,932 45,294

22 Tra Vinh 2 districts 13 29,495 157,545

22.1 Tra Cu 9 20,707 108,136

22.2 Chau Thanh 4 8,788 49,409

23 Soc Trang 2 districts 13 27,493 171,889

23.1 My Tu 5 10,835 57,566

23.2 Vinh Chau 8 16,658 114,323

Total 23 provinces 43 districts 414 208,779 1,232,496.-